Business Model and Strategy

At Kungsleden, we create long-term values for customers, employees, society, shareholders and other stakeholders through three collaborative key activities - active and sustainable management, value-creating development and refinement, as well as strategic acquisitions and optimisation.

Our long-term goal is to become one of Sweden's most profitable and successful listed property owner companies by having the market's most satisfied customers and dedicated employees and delivering an attractive total return to our shareholders.

Active and sustainable management

Active and sustainable management and close customer dialogue are the focus of Kungsleden as a property owner. We value customer relationships, local presence and market knowledge very highly and continuously adapt our portfolio to meet changing trends and our customers' high demands.

Kungsleden's ambition is to contribute to our customers' businesses by being solution-oriented, responsive and accessible, and by providing attractive and functional premises in the right locations and at the right price - and by always delivering that little extra. Thanks to a varied portfolio with a variety of different types of premises, we have an excellent capacity to meet the changing needs our customers.

Our management organisation is decentralised with three administrative areas and offices in eleven strategic locations.

Value-creating development and refinement

Continuous development, refinement, modernisation and customisation of our properties are strategic key activities within Kungsleden.

The investments we make increase the quality and attractiveness of our properties, improve cash flow and thus increase the value of the portfolio. Sustainability aspects such as living urban environments, choice of materials and climate adaptation are always included in our projects.

Property development can include everything from minor modernisations to changing floor plans to meet customer needs, changing a building's use, carrying out major renovations, building new premises, developing undeveloped land and building rights or conducting detailed planning processes. Our large projects are planned with the entire local area in mind.

Strategic acquisitions and optimisation

Continuous optimisation and expansion of the property portfolio is an important part of our business model. The main focus is on sustainable and attractive offices in selected Swedish growth areas; with a particular focus on the four priority growth markets Stockholm, Gothenburg, Malmö and Västerås.

The ambition is to have large and efficient properties with at least 70 per cent consisting of offices.

Active participation in both the buying and selling side of the market contributes to an up-to-date market knowledge and allows for insights to be woven into the internal valuation process. The acquisitions that may arise in the future are primarily offices within Kungsleden's four priority growth markets. In addition, further development’s are closely monitored in the growing regional cities where we already have a presence today.

The current business plan runs through 2019-2023. Read more about it in our 2019 annual report.